M&G plc (“M&G”) today announces that is has concluded a £331m buy-in transaction for the M&G Group Pension Scheme (“M&GGPS”), one of the Group’s own pension schemes, as well as a £286m bulk annuity transaction for an external scheme1. The insuring entity is The Prudential Assurance Company Limited (“PAC”), M&G’s wholly-owned subsidiary offering life and pensions solutions.
The whole scheme buy-in for the M&GGPS secures the benefits of 1,414 pensioner and deferred members. Active members were given the choice of either continuing with defined benefit accrual in a different M&G group pension scheme or becoming part of the bulk purchase transaction and joining a defined contribution arrangement for the future, with the timing of the buy-in closely aligned with that of the transfer to ensure the best outcome for all members.
M&G also worked with the Trustee and its advisers to enable a transfer of the pension scheme’s illiquid assets to PAC as part of the transaction.
The Trustee was advised on the transaction by Aon as risk settlement adviser and Scheme Actuary, Hymans Robertson as investment adviser and Mayer Brown International LLP as legal adviser. Eversheds-Sutherland provided legal advice to M&G.
Andrea Rossi, Group Chief Executive, M&G plc said: “I am delighted that we have been able to create bespoke solutions to meet the needs of these two schemes. Combining our deep expertise in asset management and insurance capabilities was key for these transactions.”
Mark Thompson, Chair of Trustee, M&GGPS: “We are pleased to have achieved this significant step that will provide greater security for members’ benefits. The collaborative approach between the Trustee, M&G and our advisers has meant that we have been able to insure our members’ benefits sooner than we expected and so this is a very positive outcome.”
Hannah Brinton, Lead Adviser, Aon: “This transaction involved a high degree of complexity and required careful collaboration across many stakeholders. We are extremely pleased to have supported the Trustee throughout, enabling them to proceed with the transaction with confidence regarding the future security of members’ benefits.”
1A full press release for the second transaction will be released next week.